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US Senator Orrin Hatch
March 17th, 2008   Media Contact(s): Mark Eddington or Jared Whitley (202) 224-5251
Printable Version
HATCH TELLS ADMINISTRATION TO KEEP ITS HANDS OFF OF UTAH'S MINING ROYALTIES
 
Washington – Senator Orrin G. Hatch (R-Utah) joined a bipartisan group of 13 Western senators on a letter to the Administration telling it to keep its hands off mineral-lease money intended for Utah and other mining states. In its annual budget to Congress, the Administration proposes reducing the share of receipts that state governments receive from mineral-leasing activities on public domain lands by 2 percent annually, which would cost affected states more than $46 million a year – about $3.33 million from Utah’s budget.

“When it comes to funding public works, the West is often at a huge disadvantage because it lacks the tax base of more populous regions and because so much of our land is under federal control,” Hatch said. “But obviously the West’s natural resources are very valuable, so for the federal government to encroach upon our mining royalties is unacceptable.”

Utah receives more mineral-lease money than every other state, except Nevada and Wyoming, and therefore would be especially impacted by a recent attempt by the Administration to charge the states for administering the mineral leasing program out of the states’ share of mineral royalties, which it terms “net receipt sharing.” States use these royalties for a variety of important purposes, including educational improvements.

“While I appreciate the Administration’s efforts to balance the budget, taking money from state coffers is not the way to do it,” Hatch said. “This money rightfully and lawfully belongs to the states, and my colleagues and I will make sure the states get what is rightfully theirs.”

 
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